Rights Of A Mutual Fund Investor | Rights & Duties Of Mutual Fund Holder
Rights Of A Mutual Fund Investor
As Mutual Funds investor you must attentive of all fundamentals of Mutual Funds, bounded by legal provisions. Under Sebi’s laws and rules, investors can enjoy convinced rights which are produced by fund houses. At the same time, to have a stress-free investment experience, you must have acquaintance about Rights of a Mutual Fund Investor. Here’s is a primer on Rights & Duties of Mutual Fund Holder defined.
Always remember one thing when you create an online account, there is a checkbox next to terms and conditions must check then take any decision. Some fund houses, which are investor focused, extend services that are more than what their regulatory obligations. Buying mutual fund schemes to redemption of such scheme, SEBI has founded certain right to the investor.
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Rights Of Mutual Fund Holder
Scheme Related Documents
As a potential investor in a mutual fund scheme, you are eligible to check all the relevant facts along with schemes in which you invested. You are applicable to acquire a set of documents including scheme information document and statement of additional information. These both terms together outline the offer document for the plan in that you intend to invest in. The fund house must provide key information document, a set consisting vital documents regarding the scheme and must inform about the changes occurs in scheme.
Scheme Related Updates
After each investment within five working days, users obtain SMS or email alert from his/her fund house. During the particular month, users will also acquire monthly update for all the transactions from Association of Mutual Funds in India. “Consolidated Account Statement” file consist all the details of transactions, across all schemes by the fund house in which have invested. User can register their email id to obtain eCAS and if the customer don’t transact every month he will get a CAS with all the details of his mutual fund holdings. As right of investor you must receive annual reports from all the fund houses.
If you have desire to purchase mutual funds you can buy it directly or through an authorized distributor. If you make your investment by distributor, you have right to know commissions which is provided by the fund house to the distributor who is getting you to invest in the scheme. Rules also permit to the investors to know about how much the distributor makes through fee or commissions, if he/she vends a competing plan to you. If you feel that your distributor is receiving the highest commission through selling the scheme in which you intend to invest, you can investigate a little more about the suitability of the scheme.
During a financial year, investors can obtain a summary of dividends received. Various fund houses offers various kinds of service to the investors like as mail back service and detailing dividends paid in a portfolio and some fund providers produce trackers on their website foer helping the investor to know about the status of such payouts.
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Call / SMS Services
Several fund houses provides the facility that they could provide missed call to a dedicated number and get the full details of their portfolio and some fund houses also permit to transact by SMS.
Each fund house posse’s complaint redressal mechanism to tackle investor grievances and if the customer have any kind of complaint, he/ she can approach the designated officer in the fund house. In case if you are satisfied there properly you may approach to AMFI, or even Sebi, the regulator.
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Duties Of Mutual Fund Holder
As an investor, customer must make nominations to each scheme that he/ she have investments in. In any unfortunate event, it will assist you and your whole family.
Whenever you are switching from one scheme to another, you must aware about the pros and cons of such a switch and after that take decision whether such a switch is good for you not.
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Be Vigilant With Documents
Before signing at any fund-related document, first read it carefully then understand it after that do signature. If you don’t don’t understand any part of document seek professional help otherwise an unexpected surprise will come in front of you.
Investing in regulated schemes provides many distinct advantages to the investors. It provides the platform for investors where they can get information of their investments and the possibility of return generation. Investor must aware about its right so that he can use it as per requirement.